Our thinking

Climate tech – silver bullet or lead balloon?

13 December, 2024

In recent months, there have been several setbacks for global climate efforts, with Trump’s return to power and a COP that fell short of expectations. In this context, it’s refreshing to see the UK emerging as a leader in the climate space. According to PwC, while global funding for climate tech is on the decline, the UK has bucked the trend, increasing its investment in the space by 24%, reaching £4.5 billion in 2024. Notably, over £1 billion of this total is directed towards AI-driven climate tech firms based in the UK.

While we’re desperate to speak positively about how this new funding is going to be the key to efficient operations, energy use and ultimately a significant reduction in the UK’s and global carbon footprint, that isn’t exactly how we are feeling. The PwC report highlights that those industries with the highest emissions reduction potential, such as industry, food and agriculture are still receiving disproportionately low levels of funding.

In a UN report concerned with the focus of investment on climate tech, they state that  “using new technologies as a silver bullet without addressing the root causes of sustainable development issues can bring new harms”. The UN report suggests that the solutions are already there – regenerative agriculture, insulating houses, etc. We just need to unlock funding in the right places.

We’re not saying climate tech is bad, we hope it is a silver bullet. However, it’s so clear that change needs to happen now. Highly emitting industries need to be made less emitting, and fast. So, we’re going to keep striving to help our clients set, reach and over-achieve their Net-Zero goals, and we’ll hope regulation and funding mechanisms continue to evolve to help that happen!

By Anna Heis